While import offers start to soften, the US domestic wire rod market remains weak--and prices are expected to continue dipping in the near future.
Although US domestic wire rod spot prices have remained stable this week after dropping slightly in the week prior, the market is still under considerable pressure from weak demand and lackluster sales activity. Sources tell SteelOrbis that more slight downticks in the $0.50 cwt. ($11/mt or $10/nt) range are expected in the weeks to come, especially as speculation grows of another sideways scrap trend in September.
For now, spot prices for US domestic wire rod remain in the range of $37.00-$38.00 cwt. ($816-$838/mt or $740-$760/nt) ex-Midwest mill, with a few large-tonnage orders coming in slightly underneath the bottom end. Additionally, some mills do not have full order books for September, and sources tell SteelOrbis that those mills are the most willing to be flexible.
The import wire rod market is also softening, as Turkish wire rod offer prices came down approximately $0.75-$1.25 cwt. ($16-$27/mt or $15-$25/nt) in the last week, due to weakened end-user purchasing activity in the local Turkish market on the heels of Ramadan and overall global economic turmoil that has made many of Turkey's traditional export markets nervous. However, even lower wire rod prices in the narrowed range of $37.25-$37.75 cwt. ($821-$832/mt or $745-$755/nt) DDP loaded truck in US Gulf ports are still finding little to no interest in the US market--a trend likely to continue as long as US demand for wire rod remains depressed.